uBid reports Q2 earnings: Gross Merchandise Sales rise 8.2% to $30.3 million

[mandy]

uBid.com Holdings, Inc. (OTCBB: UBHI) whose uBid, Inc. subsidiary is one of the leading business-to-consumer and business-to-business online marketplaces in the U.S., today announced results for the second quarter ended June 30, 2006. Highlights for the second quarter of 2006 included:

    * Gross Merchandise Sales (GMS), a key business metric, were $30.3 million compared to $28.0 million one year ago, a 8.2% increase.(1)
    * Gross profit of $2.1 million, compared to $2.7 million in the second quarter of fiscal 2005.
    * Customer orders increased 21% to approximately 125,000 from 103,000 in the second quarter of last year.
    * uBid.com Certified Merchant Program (UCM) grew participating members by 38% sequentially to 1,307 from 949 merchants reported at March 31, 2006.
    * Active Auction Participants totaled 335,000, while the number of Auction Events increased 89% to approximately 478,000.
    * Customer Registrations totaled approximately 38,000 in the second quarter of 2006 compared to approximately 37,000 a year ago.

Robert H. Tomlinson Jr., CEO of uBid.com Holdings, Inc. commented, "The second quarter represented another step in the transformation of uBid.com. While our financial performance was similar to first quarter results, we made strides strategically, through partnerships and an asset acquisition in July, 2006. Specifically, we were able to align our business with established entities that share our passion for a secure customer experience. We also grew our Certified Merchant program significantly while cost effectively acquiring 900,000 potential customers via our purchase of certain assets of Bidville. In combination with our recent capital infusion, uBid.com is now far stronger than anytime in recent memory. In fact, we are optimistic that our financial performance in the back half of the year will exceed our first half performance, and over the long run, we'll be able to drive value for shareholders, particularly from these levels."

Recent events include:

On May 22, 2006 uBid and SmartShopper.com announced the launch of the first ever privatelabel comparison shopping tool, uBidShopper. This free, downloadable comparison shopping software is designed to increase value and enhance relationships with uBid customers.

On May 25, 2006 uBid announced a partnership with SkyAuction.com to provide new travel auction deals to its customers. The new partnership will offer "Bid On" or "Buy Now" airline tickets, room nights, tours, cruises, and all- inclusive vacations.

On June 28, 2006 uBid announced its participation in Google's new Checkout program. uBid expects to benefit significantly from Google's vast consumer presence and commitment to building a safe and secure checkout process for online shoppers.

On July 24, 2006 uBid announced that its Registration Statement on Form S-1 filed on February 10, 2006 was declared effective on Friday, July 21, 2006 by the Securities and Exchange Commission.

On July 27, 2006 uBid announced the acquisition of certain auction assets of Bidville, Inc., a Nevada corporation founded in 1999 as an Internet auction alternative to eBay. Bidville, Inc. is well known for its innovative auction site user features, such as Storefronts, Watch Lists, Image Gallery, and fixed price listing options.

On August 3, 2006 uBid announced that Paul Traub was elected to the Board of Directors. Mr. Traub is a founding partner of Traub, Bonacquist & Fox, LLP, a New York based law firm, focusing on strategic asset acquisitions and disposition, insolvency and corporate restructuring, distressed financings, and litigation. In addition, Mr. Traub is an advisor to Petters Group Worldwide, LLC, a principal shareholder of uBid.com.

full press release: http://www.ubid.com/about/Press_room/press53.asp